Motorola Mobility Strategy + 1Q11 - NAGILITI

#mobilityonfire

Develop and market comprehensive smartphone portfolio across multiple price points and strengthen position in
priority markets: North America, China and Latin America, followed by Western Europe and other strategic markets
-MMI

Motorola Mobility, Inc.
1Q11 Highlights + Strategy
Executive Women in High Tech| info@nagiliti.com

#content
7 MMI Snapshot
7 MMI Financials
7 MDb 1Q11 highlights <1>
7 MDb 1Q11 highlights <2>
7 Home 1Q11 highlights <1>
7 Home 1Q11 highlights <2>
7 MMI Strategy

MMI = Motorola Mobility, Inc.
MDb = Mobile Devices Business Segment
Home = Home Business Segment


A new wave of convergence is unfolding…
Lines that once separated the internet, wireless mobility, computing and media as distinct forces
are blurring to create a more mobile, connected and social society. Devices that consumers use
daily are now connected––linking them to people, resources, information and entertainment
both at home and on the go. Those connections are resulting in new social behaviors and
consumer expectations for devices.

Social media and TV viewing are increasingly a single experience. 42% of viewers globally have
used social networks or chat services to discuss a TV show or video while they were watching it.
Of this group, 22% said social media multi-tasking is a regular part of their viewing experience,
and 61 % would be prepared to pay more for a service that offered these capabilities.

Preference for internet-enabled devices is growing. 20% of respondents own an internet-enabled
TV; 30% own a smartphone, with another 28% intending to own one within the coming months.
Recent research also forecasts that smartphone and converged-device penetration will happen
much faster than PC penetration––and smartphones will surpass PC shipments within two years.

-Motorola Mobility


#snapshot
About Motorola Mobility, Inc. (MMI)
7 Provider of innovative technologies, products and services that enable a broad range of mobile and
wireline, digital communication, information and entertainment experiences.
7 Fuses innovative technology with human insights to create experiences that simplify, connect and
enrich people's lives.
7 Product portfolio includes converged mobile devices such as smartphones and tablets; wireless
accessories; end-to-end video and data delivery; and management solutions, including set-top boxes,
video distribution systems, and data-access devices; and, wireline broadband infrastructure products as
well as associated customer premises equipment.
7 NYSE MMI common stock trading commenced: 4 January 2011
7 19K employees

MMI’s Two Business Segments…
Mobile Devices Business (MDb): Mobile wireless devices and related products and services.

Home Business (Home): Technologies that provide video entertainment services to consumers by
enabling subscribers to access a variety of interactive digital television services.

SOURCE: Motorola Mobility


#financials
Motorola Mobility, Inc. - 1Q11 Financials
7 Net Revenue: $3B, ↑22% vs. $2.5B in 1Q2010, reflects $486M or 30%↑ in MDb, and $66M, or 8%↑ in Home
7 Operating Loss: $36M vs. $172M in 1Q2010
7 Net Loss: $81M vs. net loss of $212M in 1Q2010
7 Operating Cash Flow: $107M vs. $26M in 1Q2010
7 Gross Margin (GM): $755M, represents 24.9% of net revenues, vs. $595M in 1Q2010 or 24.0% of net revenues
— Increase in MDb GM was driven by 30%↑ in net revenues and increased volume of smartphone devices
— Increase in Home GM was primarily due to 8%↑ in net revenues and one-time product cost recoveries
7 Selling, General and Admin Expenses (SG&A): $417 M or 13.8% of net revenues, representing 12%↑ vs. $371M or
15.0% of net revenues in 1Q2010
— Increase reflects higher SG&A expenses in MDb to support the growth in smartphone volumes, and to a lesser extent,
higher SG&A expenses in Home
— SG&A expenses as a percentage of net revenues decreased in both segments
7 R&D Expenditures: $357 M, or 11.8% of net revenues, ↓3% vs. $367M or 14.8% of net revenues in 1Q2010
— Decrease reflects lower R&D expenditures in both MDb and Home segments, primarily due to savings from cost-
reduction initiatives
— R&D expenditures as a percentage of net revenues decreased in both segments
7 Net Loss (before income taxes): $51M, vs. $199M in 1Q2010
— Improvement in the loss was primarily attributable to $160M increase in GM, primarily due to increase in revenues,
partially offset by $46M increase in SG&A expenses


#mdb 1Q11 highlights <1>
Motorola Mobility, Inc.’s Mobile Devices Business (MDb) designs,
manufactures, sells and services wireless mobile devices, including
smartphones and media tablets, with integrated software and accessory
products, and licensed intellectual property.

MDb 1Q2011 Highlights
7 Represents 70% of Motorola Mobility Inc.’s consolidated net revenues
7 Shipped 4.1M Smartphones and >250K Tablets
7 Launched Motorola ATRIX™ Smartphones
7 Launched Motorola XOOM ™, Company’s 1st tablet and 1st Android 3.0
device, in 3G and WiFi versions
7 Announced 4 mobile devices specific to China market: dual-core, Android
2.3 XT882 and MT870 plus MT620 and XT316



#mdb 1Q11 highlights <2>
7 Net Revenues: $2.1B, represents 70% of MMI’s consolidated net revenues
— 30%↑ vs. $1.6B in 1Q2010, which represented 66% of Motorola Mobility Inc.’s consolidated revenues
— Increase was primarily driven by 20%↑ in average selling price (ASP), and 9%↑ in unit shipments
— Net revenues increased substantially in Latin America, Asia, and the Europe, Middle East and Africa region
(“EMEA”)
7 Mobile Devices Shipments: 9.3M units, 9%↑ vs. 8.5M in 1Q2010, and 18%↓ sequentially vs. of 11.3M in
4Q2010
— 4.1M Smartphones shipped (Android-based), 80%↑ vs. 2.3M in 1Q2010, and an 18% ↓ sequentially vs.
4.9M in 4Q2010
— 250K+ Media Tablets shipped
7 MDb ASP: ~↑20% vs. 1Q2010, and ~7% ↑ vs. 4Q2010. ASP lift in 1Q2011 vs. 4Q2010 was driven by launch
and shipment of media tablets in 1Q2011

7 Operating Loss: $89M in 1Q2011, vs. Operating Loss of $192M in 1Q2010
— Decrease in Operating Loss was primarily due to increase in GM driven by 30% increase in net revenues and
favorable product mix. Specifically, due to increased volume of smartphones, partially offset by higher SG&A
expenses to support the growth in smartphone volumes
***GM increased plus both SG&A and R&D development expenditures decreased as a percentage of net revenues in 1Q2011 vs. 1Q 2010.



#home 1Q11 highlights <1>
Motorola Mobility, Inc.’s Home Business designs, manufactures, sells, installs and services set-top boxes for
digital video, Internet Protocol (“IP”) video, satellite and terrestrial broadcast networks, end-to-end digital
video and Internet Protocol Television (“IPTV”) distribution systems, broadband access network infrastructure
platforms, and associated data and voice customer premises equipment and associated software solutions to
cable television (“TV”) and telecommunication service providers.

Home 1Q2011 Highlights
7 Represents 30% of Motorola Mobility Inc.’s consolidated net revenues
7 Leveraged Motorola’s 4Home managed services solution with Verizon’s announcement of connected home
services for FiOS subscribers
7 Acquired Dreampark, allowing for continued expansion of Medios and strengthening Company’s ability to
provide customers with innovative solutions for deploying converged media experiences
7 Launched VAP 2400 wireless video bridge solution enabling content distribution for the broadband home
7 Selected by HBO Latin America to upgrade its satellite network for HD video service delivery


#home 1Q11 highlights <2>
Home Segment 1Q11 Financials
7 Net Revenues: $904M, represents 30% of MMI’s consolidated net revenues and 8%↑ vs. net revenues of
$838M in 1Q 2010 which represented 34% of MMI’s consolidated net revenues
— 8%↑ in Home net revenues were primarily driven by 11% ↑ in net revenues of set-top boxes, reflecting 24%
↑ in shipments of set-top boxes, partially offset by lower ASP
— HD set-top boxes revenues increased significantly, primarily due to higher shipments to large telecom and
cable operators in NA due to higher demand
—NA net revenues continued to comprise a significant portion of the segment’s business, accounting for 77%
of the segment’s net revenues vs. 71% in 1Q2010
—Net revenues increased in North America, Latin America and Asia, partially offset by decreased net revenues
in EMEA

7 Operating Earnings (OE): $53M, vs. $20M 1Q 2010. Increase in operating earnings were primarily due to:
— OE increase was primarily due to Home GM increase, driven by 8% increase in net revenues and one-time
product cost recoveries, and decrease in R&D expenditures, reflecting savings from cost-reduction initiatives,
partially offset by slightly higher SG&A Expenses

***GM increased plus both SG&A and R&D expenditures decreased as a percentage of net revenues in 1Q2011 as compared to 1Q2010.



#strategy
Motorola Mobility, Inc. Strategy Highlights
7 Deliver innovative experiences, both in the home and on the go, across multiple types of devices to address emerging
opportunities as industries increasingly interacting with each other are expected to create demand for new consumer devices,
applications and services.
7 Focus on opportunities resulting from the convergence of industries, such as: wireless, media, computing and the Internet, since
consumer demand for video services is expected to drive the need for infrastructure equipment to optimize networks and
storage, increase bandwidth and provide new services across multiple screens, including smartphones, media tablets and TV’s.

MDb Strategy Highlights
7 Develop and market comprehensive smartphone portfolio and strengthen position in priority markets (i.e. NA, LATAM, China)
— Differentiate products with software and services, including MOTOBLUR, proprietary applications and services suite,
— Enhance ecosystem using “MotoDEV,”developer network application development program,
— Provide a smartphone portfolio across multiple price points for broad array of carriers, distributors and retail customers. Mid-
to high-tier feature phone portfolio will be more limited given declining demand in this segment of the handset industry.
7 Develop portfolio of media tablets, wireless devices which enable enhanced access to the mobile Internet, content
consumption, and enterprise experiences for consumers and business users to address new growth opportunity.
7 Priority markets focus: North America, China and Latin America, followed by Western Europe and other strategic markets.
7 Continue to develop and market iDEN portfolio of devices, although overall iDEN unit demand in 2011 to be lower than in 2010.
7 Portfolio will be limited to meet certain market needs for lower-priced, voice-centric mobile devices.

Home Strategy Highlights
7 Leverage leadership position in set-top boxes and video delivery systems and prioritize research and development efforts to
position for future growth and emerging market opportunities
7 Manage overall cost structure and prioritize product portfolio for profitability


Contact
info@nagiliti.com

Executive Women in High-Tech
http://tinyurl.com/69ezarl


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